Profitable product mix: Specialisation versus wide product portfolio
A variety of materials can be processed with a laser allowing a range of customer applications to be processed. When starting a company, a broad product portfolio is an excellent way to test various products and see which are popular with customers. Offering a specialised range of products or a broad range is a strategic decision for any business. The competitive market sector will play a significant role in this decision: Are you the sole provider of laser services? Or is there already a specialist for example glass engraving or wedding decorations around the corner?
As an entrepreneur, you should carefully consider your business model and weigh the advantages and disadvantages for yourself.
In terms of specialisation, the workload and output can be optimised as best as possible, as the applications are always similar and you develop into a true specialist. Thus, set-up times will be minimised while maximising profit. From a broad product portfolio through to individual customer projects and individual pieces, however, although you’re not a specialist in a certain area, customers for custom-made items are willing to pay more, which in turn leads to higher margins.